The commodity that will reach the highest value in five years if there is a global trade war

Gold will reach the highest level in five years if there is a global trade war, according to Rick Rule, CEO of Sprott U.S. Holdings, which operates in the market for four decades.
The ingot may reach $ $1,400 an ounce in 2018 because the escalating tensions will carry trade investors to safe havens and because the bull market of three decades of titles draws to a close, said Rule, you must speak in Conference in Hong Kong on Wednesday. Gold is trading at $ $1,337.50 on Tuesday after three quarters in a row of gains and the assets of exchange-traded funds are near the highest level in half a decade.
The President of the United States, Donald Trump, ordered the implementation of import tariffs to steel and aluminum and sought new restrictions on Chinese investment. The Asia's largest economy retaliated by imposing tariffs on Monday and the US should disclose this week a new list of Chinese products which are applied rates. A trade war could reduce demand for American assets and expand the budget deficit, leaving the dollar vulnerable in case of international buyers to avoid the U.S. debt.
"In the 40 years that I work in the gold market, the most important determinant of the price of gold was the international confidence in the U.S. dollar and, in particular, in us dollar expressed in 10-year u.s. Treasury," said in an interview, 29 Rule of March. "The fact the US apparently walking to a zero sum trade war was starting to worry people for being a bad thing for everyone in the world, not only for the US. The possibility of a trade war without winners certainly is cause for concern. "
The federal, State and local debt combined in the U.S., in the balance sheet and in rights, in relation to levels of savings and investments in the economy, will increase the concerns in relation to the purchasing power of the dollar in the long term, particularly in view of the low current income, said Rule. The increase in income and savings in Asia, in the mood to buy gold, can also generate a greater demand, said. The Sprott U.S. Holdings is a subsidiary of Sprott Inc., based in Toronto, which kept 11.5 billion ($ $8.9 billion) under management at 31 December.
The relaxation of China-us trade dispute may contain the enthusiasm of the optimists. On Monday, China asked for negotiations to avoid further damage to relations and repeated your position that disputes should be resolved with dialogue. In addition, the largest u.s. tax reform in years, sanctioned by Trump in December, will give more stimulus to the American economy and can reduce the impact on the budget deficit.
The BNP Paribas predicted at the end of February to the end of the year will probably get ingot a value smaller than earlier this year, with four higher Federal Reserve interest rates expected in 2018, while the IHS Markit provides that the gold will fall to $ $1,200 by the end of the year.